BlackRock rolls out five climate transition ETFs

BlackRock, the world’s largest asset manager with $10.5 trillion in assets, has introduced a suite of five climate transition exchange-traded funds (ETFs) designed to invest in companies leading the shift to a low-carbon economy.

The new Ireland-domiciled iShares MSCI Climate Transition Aware Ucits ETFs, classified under Article 8 of the EU’s Sustainable Finance Disclosure Regulation (SFDR), focus on different regions: global, Europe, the US, Japan, and the European economic and monetary union.

These ETFs track MSCI transition-aware select benchmarks, investing in companies that set forward-looking science-based targets and generate green revenues.

This initiative aligns with BlackRock’s vision of a low-carbon transition characterised by significant changes in production and consumption, requiring substantial capital investments.

Manuela Sperandeo, head of BlackRock’s iShares product for Europe and the Middle East, highlighted that the transition will drive significant capital reallocation as energy systems and technologies evolve.

The launch aims to offer investors tools to mitigate risks and capitalise on opportunities emerging from this transition.

Sebastian Lieblich, head of index products for Europe, the Middle East, and Africa at MSCI, emphasised the growing demand for data and tools to help investors navigate the low-carbon transition. He noted that the MSCI indices’ methodology will be crucial for investors integrating these parameters into their strategies.

The ETFs are available across several European countries, including France, Germany, Italy, Spain, and the UK.

Attribution: The Financial Times.